Singapore is poised to become the next low-fare battleground as several airlines from throughout South-East Asia prepare to provide the city-state its first low-fare service, write Leithen Francis and Brendan Sobie.
Indonesian low-fare carrier Lion Airlines plans to expand into the Singapore market on 14 November with four daily flights from Jakarta. Malaysia's AirAsia has been offered slots at Singapore Changi and Seletar airports and local new-start ValuAir is about to select an aircraft to support its planned mid-2004 launch.
Singapore Airlines (SIA), meanwhile, is nearing a decision on establishing its own low-fare carrier to fend off the new competition. "We have almost completed a study and hope to make a decision before the end of this year," says SIA senior executive vice-president commercial Michael Tan.
AirAsia is committed to adding 13 Boeing 737-300s over the next eight months, giving the carrier a 20-aircraft fleet by mid-2004. Lion says it plans to expand its Boeing MD-82 fleet from 18 to 23 aircraft by year-end and to 35 aircraft by the end of 2004, with several new international routes being considered.
AirAsia's network is limited to domestic services, but the carrier aims to launch flights to Bangkok in December and is studying Singapore to complement its new service to nearby Johor Bahru in Malaysia.
Singapore is trying to woo AirAsia and has offered to extend Seletar Airport's runway to accommodate 737s.
ValuAir is looking at acquiring new 737-700/800s or Airbus A320 family aircraft. Earlier this month SIA decided against launching a low-fare airline in Thailand. This could free SIA to launch quickly a low-fare carrier in its home market.
Source: Flight International
